Fruits get out of reach ahead of Ramadan
Muhammad Ayub Ali :
Imported fruits are increasingly becoming out of reach for middle and lower-middle-class consumers ahead of Ramadan due to inflation and recent price hikes following an increase in supplementary duty on grapes, apples, watermelons, oranges, pears, and tangerines.
On 9 January, the National Board of Revenue (NBR) raised the supplementary duty on the import of certain dry and fresh fruits, including nuts and betel nuts, from 30 percent to 45 percent.
Additionally, the duty on some fresh fruits, such as grapes, apples, and watermelons, as well as fruit juices, was increased from 20 percent to 30 percent.
According to Md Serajul Islam, President of the Bangladesh Fresh Fruits Importers Association, nearly 40 percent of the country’s fruit demand is met through local production, while the rest is covered by imports.
“Previously, we paid Tk 99 to 100 per kg in value-added tax (VAT) and supplementary duty (SD) for apples, oranges, pears, and tangerines. Now, we have to pay Tk 115 to 116 per kg. For grapes and pomegranates, the cost has risen from Tk 120-125 per kg to Tk 140-150,” he explained.
With Ramadan falling in March this year, the availability of seasonal fruits is expected to be limited, increasing dependency on imports. “For this reason, we held a meeting with the NBR to request a reduction in VAT and SD. However, instead of lowering them, they have increased the rates,” he added.
Industry sources indicate that apples are imported from South Africa, Brazil, China, and Australia; pomegranates from India; pears from Pakistan; sweet oranges from Egypt; tangerines from China and India; and grapes from India.
Data from the NBR shows that Bangladesh imported fruits and nuts worth Tk 5,563.26 crore in the fiscal year 2022-23, compared to Tk 5,374.23 crore in 2021-22.
Despite criticism from stakeholders, businesses, and political leaders, the interim government has raised VAT and SD midway through the fiscal year as part of its revenue collection strategy to meet conditions set by the International Monetary Fund (IMF) under its ongoing $4.7 billion loan programme for Bangladesh.
Former President of the Consumers Association of Bangladesh (CAB), Ghulam Rahman, warned that this move would increase the financial burden on people, push up inflation, and exacerbate public suffering.
Bangladesh’s fruit imports, as reflected in the opening of letters of credit (LCs), declined by 8.5 percent year-on-year to $107 million during the July-November period of the fiscal year 2024-25.
Retailers have already increased prices by Tk 20 to Tk 30 per kg for apples, oranges, grapes, sweet oranges, and watermelons, prompting many consumers to reduce their purchases amidst persistently high inflation over the past two years.
Balel Hossain, a shopper at Karwan Bazar, one of Dhaka’s largest kitchen markets, expressed his concerns, stating that he could no longer afford to buy foreign fruits in the same quantities as he did a year ago.
“Ten days ago, I bought medium-sized oranges for Tk 260 per kg, but the price has now risen to Tk 290. Similarly, apples that were Tk 290 per kg are now Tk 320,” he added.